Monday, September 22, 2008

Mortgage Servicer Agrees To $28M Payment To Settle FTC Charges Alleging Unlawful Practices

The Federal Trade Commission announced earlier this month:
  • The Bear Stearns Companies, LLC and its subsidiary, EMC Mortgage Corporation, have agreed to pay $28 million to settle Federal Trade Commission charges that they engaged in unlawful practices in servicing consumers’ home mortgage loans. The companies allegedly misrepresented the amounts borrowers owed, charged unauthorized fees, such as late fees, property inspection fees, and loan modification fees, and engaged in unlawful and abusive collection practices. Under the proposed settlement they will stop the alleged illegal practices and institute a data integrity program to ensure the accuracy and completeness of consumers’ loan information.

For more, see Bear Stearns and EMC Mortgage to Pay $28 Million to Settle FTC Charges of Unlawful Mortgage Servicing and Debt Collection Practices.

For the relevant court documents, see:

See also, Bear Stearns provided fuel for subprime boom (Bear Stearns was a major funding source for hundreds of thousands of subprime and exotic mortgages, providing the jet fuel to the boom).

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